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| Construction Claims Task Force |
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Purpose:
The Construction Claims Task Force was authorized by the 2005 Oregon Legislative Assembly in House Bill 2078 to study the relationship between construction liability claims and construction industry practices, construction defects, consumer protection, and state-mandated liability insurance requirements for contractors. The goal of the study was to reduce the number of liability claims stemming from construction issues while assuring appropriate protection of Oregon consumers and affordable insurance for contractors. The task force adjourned January 2007.
Background:
Nine members made up the task force, each member appointed for their expertise and experience in the construction, insurance or energy fields and one member representing the public. Representatives from the construction and insurance industry formed the majority of task force membership, including members from the commercial, residential and design segments of the construction industry as well as insurance industry representatives.
Over 18 months, the task force studied and evaluated the causes and extent of construction defects as well as the need for consumer protection and the availability and affordability of contractor liability insurance. From a list of more than 80 recommendations for reducing construction defects and addressing concerns with insurance affordability the task force selected the most promising suggestions, which were then refined through research, analysis and discussion.
The task force delivered a report of its research and findings to the 2007 Oregon Legislative Assembly. The report included 11 recommendations for reducing construction defects, enhancing consumer protection and improving insurance affordability and availability. Most recommendation were unanimously approved. The task force presented each of the 11 recommendations as a component of a comprehensive system designed to improve the construction environment in Oregon.
Bills were drafted based on the 11 recommendations of the task force. Each task force recommendation that was drafted received at last one legislative hearing. Several of the task force recommendations were adopted with only minor changes, others were amended to varying degrees in order to obtain the support necessary for passage. Four of the task force recommendations that required legislative approval were not approved by the legislature.
As the bills moved through the legislative committee process it became necessary to consolidate many of the task force recommendations as well as other related issues into a single bill. House Bill 2654 became the vehicle for bringing these issues together and was signed into law by the Governor. For details on the key components that were adopted, click here.
Partner Agencies:
The Oregon Department of Consumer and Business Services’ Building Codes and Insurance divisions, as well as the Construction Contractors Board and the Oregon Department of Energy assisted the work of the nine-member task force.
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